Monopolistic competition is an
a. inefficient market structure because there is deadweight loss.
b. inefficient market structure because price exceeds marginal cost.
c. efficient market structure because free entry drives long-run profits to zero.
d. Both a and b are correct.
d
Economics
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Crowding out is important only in the classical model
a. True b. False
Economics
Which of the following is a characteristic of perfect competition?
a. Individual firms have the power to set prices. b. Firms produce differentiated products. c. New firms can easily enter the market. d. There are only a few very large firms producing all output in the market.
Economics